Should Everyone Pay The Same For a New Roof in a HOA

According to Investopedia, about one in five homeowners are in a homeowners’ association or HOA. It is key that homeowners in an HOA be aware of the Covenants, Codes & Restrictions (CC&Rs) that govern their HOA. Otherwise, they could be in for unexpected expenses.

Example Case

In Iowa, an 85-year-old man found himself in a situation with his HOA that seems quite unfair. According to the Des Moines Register, his HOA, which governs a group of 72 townhouses, is about to have to repair all of the roofs in the development. The homeowner, Jack Emehiser, has been informed that there will be one uniform fee assessed to pay for re-roofing all 72 townhouses – $6,000. The fee will be assessed to all homeowners as a special, one-time assessment.

Emehiser takes exception to the fee being equally assessed to all 72 homeowners because 30 of the homeowners do not have an additional 12-foot by 12-foot all-season room. Since this adds to the expense for roofing the entire development, and since Emehiser and those who did not opt for the all-season rooms do not have any access to those rooms, he believes he should not have to pay for the additional cost of re-roofing those auxiliary buildings.

According to the Register, Iowa law states that HOA covenants need to specify expenses that members must share and the proportional share that each member bears. Emehiser does not believe that this special assessment by the HOA is proportional. That is why he is fighting it.

How to Protect Yourself

According to the San Francisco Chronicle, prospective homeowners purchasing a townhouse, condominium or detached home in a planned development that is under CC&Rs need to look very carefully at the governing rules of the development. In some cases, such as a condominium, the future expenses for roof repair may be covered under your monthly dues, but such repair costs could just as easily not be covered.

The Chronicle also warns, even if you are in a high-rise condo and your dues cover roof repairs, you still could be billed for a special assessment. A special assessment could still be billed to you if your association does not have the funds to pay for the roof repair or replacement. You could either see your association dues for the next year rise or be levied a special assessment you would have to pay in addition to your association’s monthly fees.

Read the CC&Rs

Investopedia suggests reading the CC&Rs for any condominium, townhouse or detached home you are thinking of purchasing that is covered under a homeowners’ association. Monthly HOA fees around the country can average in different areas from a low of about $200 to highs of over $500. The area of the country has a lot to do with HOA fees but so does the type of residence and the amenities provided.

Examine the Association’s Budget and Past Fee Increases

Investopedia states that other important things to examine as a prospective homebuyer are a homeowners’ association’s budget. You need to ensure that the association is getting its fees paid by the other owners so that the association is not losing money. An association that is in financial difficulty could bill you a special assessment in order to get its budget back in fiscal shape.

Nolo suggests finding out what type of reserves that the association is carrying. Are they ready for expenses you can see walking the grounds that will be upcoming in the future, such as needing the services of a roofing company Tampa? The San Francisco Chronicle suggests also having the association print you a copy of the association fees for the past 10 years, so you can see if there have been any major increases. Nolo urges prospective homeowners to find out the laws that apply to HOAs in your state. Some set limits on special assessments.

Eye any residence that is part of a homeowners’ association with caution, especially if the development is older and appears to be in need of repairs. By examining the finances of the association and carefully reading the CC&Rs, you can protect yourself against unplanned special assessments that could endanger your finances